In traditional banking, the central banks are usually lenders of last resort, when there is a financial meltdown and a bank needs funds immediately and has no other options for funding, they would turn to the central banks. In crypto, when the market is bad, liquidity providers would rush to exit their position and pull out their liquidity. However, these moments are usually those when the project needs liquidity the most for price stabilization. In addition, the high trading volume would incur higher trading fees for the liquidity providers.